EX-99.1 2 d363593dex991.htm ENCORE CAPITAL GROUP, INC. PRESENTATION

ENCORE CAPITAL GROUP, INC. WELL-POSITIONED, DEEP STRENGTHS, DRIVING GROWTH 2012 Investor Day New York, NY June 6, 2012 Exhibit 99.1

PROPRIETARY 2 CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results and growth. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward- looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

PROPRIETARY PRESENTING TODAY Brandon Black Chief Executive Officer Dr. Christopher Trepel Chief Scientific Officer Paul Grinberg Chief Financial Officer Jack Nelson President, Propel Financial Services 3

PROPRIETARY ENCORE IS A GROWING COMPANY WITH SOPHISTICATED OPERATIONS AND DEEP CONSUMER EXPERTISE 4 1 in 9 American consumers have accounts with us 2.5 million satisfied their obligations $2 billion 26% Adjusted EBITDA † 5-year compound annual growth rate 2,600 $800 million twelve months † See endnote employees worldwide in estimated remaining collections collected in the last consumers have

PROPRIETARY OUR SUCCESS IS DRIVEN BY OUR CORE COMPETENCIES 5 COST LEADERSHIP PRINCIPLED INTENT ANALYTIC STRENGTH CONSUMER INTELLIGENCE Legal collections Marketing analytics Consumer Credit Research Institute ENCORE’S KEY COMPETITIVE ADVANTAGES International operations Account Manager expertise Portfolio valuation and purchasing Operational modeling

PROPRIETARY OUR VALUATION AND OPERATING CAPABILITIES HAVE ESTABLISHED ENCORE AS THE INDUSTRY LEADER 6 Cumulative actual collection multiples by vintage year, as of March 31, 2012 (Total collections / Purchase price) Source: SEC filings ECPG Peer 1 Peer 2

PROPRIETARY AND THE DRAMATIC IMPROVEMENT IN OUR COST TO COLLECT HAS GIVEN US A KEY COMPETITIVE ADVANTAGE 7 Overall cost to collect (%)

PROPRIETARY OUR OPERATING MODEL AND COST ADVANTAGES ALLOW US TO REMAIN PROFITABLE WHEN OTHERS CANNOT 8 2.5 2.2 2.0 Interplay of multiples with the costs of debt and collection (Unlevered IRR) Cost to collect Cost of debt: 7% 40% 45% 50% 15.7 10.6 8.3 5.2 2.9 3.4 (2.5) (2.5) (9.0) Cost of debt: 4% 40% 45% 50% 17.4 12.5 7.4 5.8 5.3 10.3 0.9 0.9 (4.1) Cost to collect Cost of debt: 10% 40% 45% 50% 13.9 6.0 2.6 8.5 0.3 (7.7) (0.3) (7.7) (18.1) Cost to collect

PROPRIETARY New asset classes Expand core footprint Performing loans Expand along the debt life cycle AS WE LOOK TO THE FUTURE, WE ARE EXPLORING WAYS TO LEVERAGE OUR CORE COMPETENCIES 9 Chapter 13 Chapter 7 Pre-charge off delinquencies Early delinquencies Auto debt Tax liens Mortgage debt Countries with mature credit systems Emerging markets Credit cards Telecom and other utilities Penetrate existing market Consumer loans Contingency collections First party collection services Municipal obligations Student loans Utilities National Existing asset classes Purchase Unsecured International Expand geographically Bankrupt accounts Focus on bankruptcy Outsourcing services Expand along value system Secured loans Cover different type of debt Chapter 13 Chapter 7 Pre-charge off delinquencies Early delinquencies Auto debt Tax liens Mortgage debt Countries with mature credit systems Emerging markets Credit cards Telecom and other utilities Penetrate existing market Consumer loans Contingency collections First party collection services Municipal obligations Student loans Utilities Defaulted National Existing asset classes Purchase Unsecured Defaulted

PROPRIETARY TODAY, YOU WILL HEAR ABOUT FOUR KEY FACTORS IN OUR ONGOING SUCCESS 10 Industry-leading growth strategy focused on low- and middle-income consumer economics Strategic growth into new asset classes and geographies Consumer- focused operational platform R&D as a differentiating, competitive strength Active management of regulatory and legislative environment

PROPRIETARY ENCORE PROVIDES AN ESSENTIAL SERVICE AND ITS MODEL SHOULD BECOME THE INDUSTRY STANDARD 11 Contingency collection agency • Four-to-six month collection cycle Pressure • Artificial deadlines • Multiple collection companies • Counterproductive incentive structure • Consumer is confused and frustrated • Consumer has 84 months to recover financially Partnership • Create partnership strategy and set goals • Tailor work strategies to individual circumstances, giving time for a consumer to recover • Maximizes repayment likelihood, creates consistency, and ensures fair treatment Relationship is transactional… ..and often ends in asset transfer Original creditor • Attempt immediate resolution during delinquency cycle (days 30 – 180) • Consumer is “charged-off” by issuer on day 181 • Issuer offers to sell unsecured, charged- off debt or service through 3rd party agencies Collection time frame Consumer treatment Outcome

PROPRIETARY WE INTRODUCED THE INDUSTRY’S FIRST CONSUMER BILL OF RIGHTS TO ESTABISH OUR COMMITMENTS TO CONSUMERS • Positions Encore as an industry leader – Sets the standard by which the industry should be judged 12 • Clearly states what consumers should expect from Encore • Gives concrete assurance regarding Encore’s conduct – Suspends interest during payment plans – Prohibits “robo-messaging” – Halts collections under certain circumstances

PROPRIETARY WHICH IS A CORNERSTONE OF OUR COMPREHENSIVE GOVERNMENT AFFAIRS STRATEGY 13 • Have proactively met with the CFPB several times on policy matters • Assembled compliance-focused task force with representation from all key areas across the company • Leading active lobbying efforts in collaboration with other major industry players • Have successfully informed bills across a number of states • Building a working group in several states to address remaining questions • Individual discussions continue with certain states Consumer Financial Protection Bureau State legislative landscape State Attorneys General

PROPRIETARY OPERATIONALLY, WE'RE BUILDING A PLATFORM THAT ENCOURAGES A DIFFERENT KIND OF RELATIONSHIP WITH OUR CONSUMERS 14 Addressing debt cycles • Acknowledging the limitations of our consumers’ household balance sheets • Living the Consumer Bill of Rights Making focused investments • Creating specialized work groups • Leveraging our industry-leading cost efficiency • Increasing direct control over consumer experience Improving consumer experience • Using market-based surveys and tests to understand consumer satisfaction • Partnering to develop new products and services • Pointing consumers to the best external references

PROPRIETARY WE’VE SEEN A SIGNIFICANT INCREASE IN THE NUMBER OF CONSUMERS WITH MULTIPLE OBLIGATIONS 15 Multiple obligations held within new portfolios, by purchase vintage (% of unique consumers) 17 25 37 44 45 2008 2009 2010 2011 2012(E)

PROPRIETARY Recovery and growth • Develop tools and frameworks to break the debt cycle • Embrace a household balance sheet approach to solvency WE ARE MORE CLOSELY ALIGNING OUR ENGAGEMENT MODEL TO OUR CONSUMERS’ NEEDS AND GOALS 16 Engage and discuss • Understand consumer preferences • Deliver customized outreach • Conduct satisfaction surveys • Score performance and provide feedback • Leverage proprietary models Promote repayment • Provide affordable payment options • Support financial education activities Systematically resolve obligations Measure and understand

PROPRIETARY WE’VE ESTABLISHED SPECIALIZED COLLECTION TEAMS TO OPTIMIZE REPAYMENT RATES AND CONSUMER EXPERIENCE 17 Internal call center share of non-legal collections (%) Increasing work group specialization and control allows for: Increasing call center specialization (Number of distinct teams) • Discounts that are better customized to consumer circumstance • Increasing numbers of deep discounts for those consumers most in need 10 11 15 17 73 79 88 89

PROPRIETARY OUR CALL CENTER PRODUCTIVITY HAS STEADILY IMPROVED THROUGH SPECIALIZATION 18 Productivity of Phoenix Call Center (Dollars collected per paid hour) 148 207 252 359 422 2007 2008 2009 2010 2011

PROPRIETARY THE NEW PRODUCT OFFERINGS ESTABLISH A DIFFERENT DIALOGUE WITH CONSUMERS AND PROMOTE RECOVERY 19 Able to pay Unable to pay • Maintain engagement • Develop a lasting relationship • Create hope and build goodwill • Provide support and tools • No conversation • Products and frameworks in development New approaches to financial literacy challenges Validation of IPA’s Borrow Less Tomorrow™ program Providing credit education • •

PROPRIETARY ANALYTICS AND BEHAVIORAL RESEARCH ARE FUNDAMENTAL TO OUR SUCCESS Dr. Christopher Trepel Chief Scientific Officer 20

PROPRIETARY UNDERSTANDING FINANCIALLY STRESSED CONSUMER BEHAVIOR IS AT THE HEART OF OUR COMPANY’S EVOLUTION Reporting and alerts Statistical analysis and forecasting • Valuation based on individual consumer characteristics • Basic business functionality focused on public company needs Analytics Data • Early technology investment in large databases and analysis software • Significant investment in credit bureau and skip tracing data 1999 2001 Predictive modeling and optimization Behavioral science field studies • First-mover advantage created through development of advanced operational models focused on consumer behavior and financial ability • Industry-first investment to understand financially stressed consumers' decisions, choices, and activities • Data critical mass achieved through owned consumer accounts and specialized data vendor programs • Access to unique data held by private companies and agencies, and analyzed by academic experts 2005 2011 21

PROPRIETARY 22

PROPRIETARY COMMITMENT TO ANALYTIC RIGOR UNDERPINS EVERY ASPECT OF OUR OPERATIONAL STRATEGY 23 Test-based marketing campaigns Psychographic consumer segmentation Analytic focus and strength Broad information advantage Specialized analytics staff across multiple business groups Commitment to starting with good questions and following the data Activity-level cost database Suit decision algorithms and business rules

PROPRIETARY THE DEMAND FOR INFORMATION AND NEW THINKING ABOUT CONSUMER FINANCIAL BEHAVIOR HAS NEVER BEEN STRONGER 18.5 23.4 U.S. families without savings or other liquid assets (%) 8.5 10.0 (%) Low- and middle-income consumers were hit especially hard during the 2008 recession and are continuing to struggle financially Debt repayment is essential to improve household balance sheet stability and insulate families against insolvency 24 U.S. families with $30,000+ in credit card and unsecured debt 2009 2011 2009 2011 Source: Stafford et al. (May 2012) Mortgage Distress and Financial Liquidity: How U.S. Families are Handling Savings, Mortgages and Other Debts. Survey Research Center, Institute for Social Research, University of Michigan.

PROPRIETARY WE MAXIMIZE OUR IMPACT BY ASKING IMPORTANT QUESTIONS ABOUT CONSUMERS AND THEIR CIRCUMSTANCES What can we do to ethically promote repayment behavior? How do consumers prioritize their spending and saving options? When do we nudge consumers using behavioral economics? Conduct research to understand financially stressed consumers’ financial decision-making Promote financial literacy and recovery through a tailored suite of products and services Integrate experimental psychology and behavioral finance with operational strategy 25

PROPRIETARY WE ARE COLLABORATING WITH LEADING INSTITUTIONS TO AUGMENT OUR SCIENTIFIC EXPERTISE Consumer payments Econometrics Credit availability Governmental agencies Behavioral decision theory Risk and uncertainty Fox Poldrack Brain systems for decision-making and executive function Cognitive Neuroscience Microeconomic analysis of social and economic challenges Public policy centers Household finance Behavioral Economics Zinman Karlan 26

PROPRIETARY OUR RESEARCH PIPELINE IS ROBUST AND FOCUSED ON BOTH TRADITIONAL AND NOVEL PROGRAMS Program Concept Planning Pilot Study Full Study Application Focus Consumer parametrics • Scientific understanding of consumer decision triggers and biases Model enhancement • Describe consumer trajectories to enhance operational strategies Settlement economics • Supply and demand factors that shape repayment behavior Information mapping • Combining data sets to reveal new variable inter-relationships Debiasing platforms • Develop new tools to improve consumer decision-making Credit availability • Understand the effect of collections on credit availability and repayment 27

PROPRIETARY OUR INNOVATIVE RESEARCH AND DEVELOPMENT PLATFORM WILL CREATE SIGNIFICANT NEW VALUE FOR ENCORE Valuation and purchasing • Identify hidden portfolio segments that carry incremental, new value and every additional opportunity to bid safely and aggressively • Provide additional valuation protection against weak portfolios and bidding protection against overpayment Policy and regulation • Provide new basis for a “seat at the table” with governmental, policy center, and non-profit constituencies • Encourage third parties to think differently about Encore’s goals and motives Operations • Drive new insights by combining traditional sources of data (e.g., issuer, credit bureau, prior affiliation) with direct consumer surveys, data mining, and psychographic information • Inform and guide highly rigorous marketing tests that pinpoint consumer repayment triggers 28

PROPRIETARY RECENT STRATEGIC TRANSACTIONS POSITION US WELL FOR OUR NEXT STAGE OF GROWTH Paul Grinberg Chief Financial Officer 29

PROPRIETARY WE THINK ABOUT GROWTH OVER THREE HORIZONS 30 Horizon 1 Defend and extend existing businesses Expand beyond existing boundaries Build emerging businesses Horizon 2 Horizon 3 2012 2015 • • • • • • • Explore new geographies Leverage deep consumer insights Expand tax lien transfer business in Texas and open new markets across the U.S. Secure low-balance asset purchasing commitments Build upon our cost advantages Concentrate on the acquisition of competitor portfolios Help define the rules that will govern the industry in future years

PROPRIETARY IN THE LAST 30 DAYS, WE’VE MADE THREE KEY STRATEGIC MOVES 31 Encore’s largest portfolio acquisition Our analytical and operating advantages enabled the successful valuation and integration of the large purchase Divestiture of our bankruptcy servicing subsidiary We transitioned Ascension Capital Group to a capable owner with expertise in the bankruptcy space Acquisition of Propel Financial Services We identified and pursued a strong cultural and strategic fit that lends itself to strong long-term growth

PROPRIETARY ENCORE IS WELL POSITIONED TO PROVIDE A SOLUTION FOR COMPETITORS WHO EXIT THE MARKET 32 Protection from the “winner’s curse” Our operational advantages insulate us against overpaying • Powerful operational models and practices • Superior forecasting methodology Industry-leading models used to estimate individual consumer willingness and ability to pay • Enabled us to identify and acquire the most valuable pools Careful consumer segmentation Significant history of acquiring assets in the resale market gave us an analytic advantage when conducting operational due diligence Practice makes perfect Acquisition of large competitor’s assets

PROPRIETARY OUR CONFIDENCE IS TIED TO THE SUCCESSFUL COMPLETION OF ONE OF THE INDUSTRY’S FEW DEALS OF THIS SIZE 33 $90M portfolio purchase in 2005, cumulative collections ($M) Initial expectations: $199M Results to date: $230M Actual collections Estimated collections 50 100 150 200 250 Jun-05 Jun- 06 Jun- 07 Jun- 08 Jun- 09 Jun- 10 Jun- 11

PROPRIETARY OUR OPERATIONAL STRENGTHS ARE UNIQUELY SUITED TO EXECUTING COMPLEX DEALS 34

PROPRIETARY WE HAVE TRANSITIONED OUR BANKRUPTCY BUSINESS TO A BETTER-SUITED OWNER 35 Bankruptcy volumes have declined ACG has not been, and would not be, material to Encore Business requires a significant technology investment Buyer has focused IT and bankruptcy expertise, and currently serves large, financial institutions

PROPRIETARY WE STUDIED MANY MARKETS AND GEOGRAPHIES BEFORE FINDING AN OPPORTUNITY THAT SATISFIED OUR ACQUISITION CRITERIA 36 • Used to fund essential services • Allows consumers to protect home from foreclosure and avoid financial penalties • Propel was recognized as a 2011 “Top Workplace” by San Antonio Express-News Consumer focused model Meaningful market opportunity • Between $7B and $10B sold each year • Advantageous timing as large players exit the market for non-financial reasons Leverage Encore’s strengths • Consumer intelligence platform focused on helping financially stressed individuals • Industry-leading asset valuation methodology • Low-cost operational platform Acquisition of dominant player in the tax lien space Asset class diversification Geography Operational strengths

PROPRIETARY THE BUSINESS MODELS ARE VERY SIMILAR, AS BOTH PROVIDE ESSENTIAL SERVICES FOR CONSUMERS AND CREDITORS 37 Leading provider of debt management and recovery solutions for consumers and property owners across a broad range of asset classes Property Owners Structured payment plans to help residential and commercial property owners settle tax obligations and avoid foreclosure Consumer Debt Holders Robust collection plans to maximize ability of consumers to repay obligations and ensure that consumers are treated fairly Financial Institutions Payment for consumer debt obligations Local Tax Authorities Payment for residential and commercial property tax obligations

PROPRIETARY OUR BALANCE SHEET REMAINS STRONG ($M) Covenant analysis* Cash flow leverage ratio Debt Trailing 4-quarter Adjusted EBITDA † Debt/Adjusted EBITDA* (maximum 2.0x) Minimum net worth Excess room Interest coverage ratio EBIT/interest expense (minimum 2.0x) 2010 385.3 346.7 1.11 95.1 5.0 2011 389.0 445.0 0.87 133.5 5.7 Q1 2012 TTM 715.5 515.4 1.39 140.7 4.8 38 * Subject to adjustments at closing based on originations and collections ‡ Encore only for 2010 and 2011; pro forma includes Encore with May 2012 competitor portfolio purchases and Propel Financial Services acquisition † See endnote ‡ Pro forma

PROPRIETARY WITH PROPEL, WE’VE ACQUIRED EXPERTISE, AN INDUSTRY- LEADING PLATFORM, AND A HIGHLY PROFITABLE PORTFOLIO 39 Acquisition characterized by complementary strengths, very strong economics, and significant growth potential Strong portfolio and platform • Opportunities to leverage Encore’s core strengths Similar economics to core business Smooth earnings profile • Used DCF analysis to value acquisition • Fast-growing, highly secure $140M portfolio, earning >13% interest

PROPRIETARY INTRODUCING PROPEL FINANCIAL SERVICES Jack Nelson President, Propel Financial Services 40

PROPRIETARY WE WORK WITH CONSUMERS THROUGH A WELL-DEFINED PROCESS 41 Property owner becomes delinquent Propel contacts consumers Consumers respond to outreach Propel pays county taxes Consumer repays tax lien transfer to Propel • Delinquent Tax Roll (DTR) created on February 1 st • 48% statutory penalty fee timeline begins • The DTR is released by the counties • Direct mail marketing campaigns begin • Property owners contact Propel and apply for tax lien transfers • Propel negotiates an appropriate repayment plan • Propel pays delinquent county taxes • County records and transfers tax lien rights to Propel • Consumer makes monthly payments to Propel • Propel services the accounts directly

PROPRIETARY OUR PRODUCT CREATES BENEFITS FOR ALL CONSTITUENTS 42 • Stop the accruing of penalties • Get time to repay their obligation • Avoid foreclosure • Obtain peace of mind Property owners • Collect otherwise delayed revenue • More funds become available for essential services like schools and hospitals • Maintain positive relationships with constituents Tax authorities • Preserve equity values • Avoid costly foreclosure proceedings and potential REOs Secured lenders

PROPRIETARY WHICH HAS ALLOWED US TO GROW OUR PORTFOLIO WHILE MAINTAINING AN EXCEPTIONALLY LOW RISK PROFILE 43 Propel originations ($M) 18 35 53 68 CAGR 55% Propel portfolio size ($M) 26 72 99 121 CAGR 67% • $6,000 average balance • 7-year term • 3.5-year weighted average life • 13-14% typical interest rate Residential portfolio characteristics • $180,000 average property value • 4% average LTV • 0.3% foreclosure rate • Zero losses 2008 2009 2010 2011 2008 2009 2010 2011

PROPRIETARY THE COMPETITIVE LANDSCAPE IS FAVORABLE AND THE TEXAS MARKET IS LARGE AND RELATIVELY UNTAPPED 44 Unserved market Funded tax liens Propel Financial Services Largest competitor 2 nd largest competitor All other competitors 82 18 2011 market penetration (%) Propel market share (Originations, %) 37 16 10 37

PROPRIETARY WE WILL LEVERAGE SOME OF ENCORE’S CORE COMPETENCIES TO DRIVE GROWTH 45 Leveraging Encore’s industry-leading consumer analytics will strengthen our ability to underwrite and provide service to our customers Consumer analytics Applying Encore’s in-depth marketing analytics will improve ROI on direct mail campaigns Direct mail marketing Encore’s robust call center operations will allow us to provide broader inbound and outbound customer acquisition and support services Customer support

PROPRIETARY WE PLAN TO EXPAND IN OUR CORE MARKET AND INTO OTHER STATES 46 Working to penetrate the 80% of the Texas market that has yet to use a tax lien transfer Existing market Lobbying to introduce legislation in other states that will create new markets New markets Exploring alternative tax lien models that will allow us to expand into new markets New opportunities

PROPRIETARY SUMMARY AND CONCLUSION Brandon Black President and Chief Executive Officer 47

PROPRIETARY ON A NORMALIZED BASIS, WE EXPECT TO DEPLOY NEARLY $500 MILLION THIS YEAR 48 2012 purchasing outlook ($M) 2012 normalized capital deployment ($M) Encore core business Propel 410 90 500 130 240 55 75 Q1 Q2 Q3 Q4

PROPRIETARY 49 ENCORE’S LONG-TERM PROSPECTS CONTINUE TO BE STRONG AND ARE GAINING STRENGTH • Operating results continue to be strong and are exceeding our internal projections • Acquisition of the market leader in tax lien transfer business provides flexibility for future purchase needs • Working collaboratively with legislators and policymakers to shape the future of the collection industry • Significant purchases in the second quarter will drive growth throughout 2012 and into 2013

PROPRIETARY ENDNOTE † The Company has included information concerning Adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company's ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with generally accepted accounting principles (GAAP). The Company has included a reconciliation of Adjusted EBITDA to reported earnings under GAAP, in the financial tables included in the Appendix, and in the Company’s Form 8-K filed today. 50

PROPRIETARY 51 APPENDIX

PROPRIETARY 52 RECONCILIATION OF ADJUSTED EBITDA Reconciliation of Adjusted EBITDA to GAAP Net Income (Unaudited, In Thousands) Three Months Ended Note: The periods 3/31/07 through 12/31/08 have been adjusted to reflect the retrospective application of ASC 470-20 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 GAAP net income, as reported 4,991 (1,515) 4,568 4,187 6,751 6,162 3,028 (2,095) 8,997 6,641 9,004 8,405 Interest expense 4,042 4,506 4,840 5,260 5,200 4,831 5,140 5,401 4,273 3,958 3,970 3,959 Contingent interest expense 3,235 888 - - - - - - - - - - Pay-off of future contingent interest - 11,733 - - - - - - - - - - Provision for income taxes 3,437 (1,031) 1,315 2,777 4,509 4,225 2,408 (1,442) 5,973 4,166 5,948 4,609 Depreciation and amortization 869 840 833 810 722 766 674 652 623 620 652 697 Amount applied to principal on receivable portfolios 28,259 29,452 26,114 29,498 40,212 35,785 35,140 46,364 42,851 48,303 49,188 47,384 Stock-based compensation expense 801 1,204 1,281 1,001 1,094 1,228 860 382 1,080 994 1,261 1,049 Impairment charge for goodwill and identifiable intangible assets - - - - - - - - - - - - Acquisition related expense - - - - - - - - - - - - Adjusted EBITDA 45,634 46,077 38,951 43,533 58,488 52,997 47,250 49,262 63,797 64,682 70,023 66,103 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 GAAP net income, as reported 10,861 11,730 12,290 14,171 13,679 14,775 15,370 17,134 11,406 Interest expense 4,538 4,880 4,928 5,003 5,593 5,369 5,175 4,979 5,515 Contingent interest expense - - - - - - - - - Pay-off of future contingent interest - - - - - - - - - Provision for income taxes 6,490 6,749 6,632 9,075 8,601 9,486 9,868 10,351 7,344 Depreciation and amortization 673 752 816 958 1,053 1,105 1,194 1,309 1,363 Amount applied to principal on receivable portfolios 58,265 64,901 63,507 53,427 85,709 83,939 73,187 69,462 104,603 Stock-based compensation expense 1,761 1,446 1,549 1,254 1,765 1,810 2,405 1,729 2,266 Impairment charge for goodwill and identifiable intangible assets - - - - - - - - 10,349 Acquisition related expense - - - - - - - - 489 Adjusted EBITDA 82,588 90,458 89,722 83,888 116,400 116,484 107,199 104,964 143,335